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Portfolio Risk Management 




Warren Buffett succinctly said:

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

Portfolio risk is aligned with the investment objectives and investment horizons of your portfolio.  

We focus on enhancing the efficiency and wealth-building process. 


  • Analyzing  the Risk vs Return measures is key to making any investment decisions

  • Diversification prepares your portfolio for the cyclical shock waves

  • The most important lesson learned from the most recent crisis is to be Proactive 

Types of Risk affecting your Portfolio:

  • Market Risk - recession impacts the whole market place

  • Sector Risk - usually energy stocks are sensitive to oil prices

  • Credit Risk  - declining cash flow affects the liquidity of the assets

  • Interest Rate Risk - higher interest reduces profit margins


Volatility is Inevitable:

  • Day to day market volatility is normal and necessary, so do not panic with constant fluctuations 

  • Markets go up and down but over the long term the positive trends continues 

  • Volatility in-itself s a measure of risk, yet both play a role in determining the portfolio returns 

  • The volatility of any investment you hold, is a direct measure of your risk appetite  

During volatile markets, we stay focused on the asset allocation, which was set based on your objectives and risk tolerance.  

Want to gain more information about our extensive experience?

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